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(Plastemart) -- The UAE has
decided to fight back against the EU decision to impose new customs duties on
the country's plastics exports on the grounds the move has no justification. The
decision means Polyethylene Terephthalate from the UAE, Iran and Pakistan will
face EU import duties of ?44.02, ?139.70 and ?42.34 per ton until 2015.
The Ministry of Economy rebuffed EU claims that it is subsidising its plastics
production and threatened to take the issue to the World Trade Organisation
(WTO). In another statement, the six-nation Gulf Cooperation Council (GCC) said
the country has the right to defend itself against that decision since there was
no reason for a new tariff by the EU. The Ministry will ask the EU Commission,
in accordance with WTO agreements, to open an interim review to ascertain the
absence of any subsidy on its plastics production, which removes a main element
for the continuation of such duties.
The EU is the GCC's top economic partner, with their two way trade rising to
nearly US$132.5 billion in 2007 from US$110 billion in 2006 and US$107 billion
in 2005. But the surplus has remained largely in favour of the EU due to a sharp
growth in its exports to the Gulf region and the fact that the GCC's exports to
the European markets are confined to oil, gas, petrochemicals and aluminium.
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